Under finance there is the business model and networking.
The business model is how an enterprise makes money. An example of this is Dell. Dell became a very successful by pioneering a business model of collecting money before their customers' PCs were assembled and shipped, resulting in net positive working capital of seven to eight days.
Networking is the value chain and partnership. Sara Lee, with a large portfolio of consumer food brands, realised that its core competencies were consumer insight, brand management, marketing and distribution. It divested itself of manufacturing and supply chain partners.
Under process there are enabling process and core process. Enabling process is routine non-differentiating processes often outsourced to others. Starbucks is an example of this. Starbucks can deliver its profitable store and coffee experience to customers because it offfers better-than-market compensation and employment benefits to its store workers- usually part time , educated, professional and responsive people.
Core process is differentiating proprietary process. Walmart do this, Walmart grew profitably through core process innovations such as real time inventory management systems, aggressive volume, pricing and delivery contracts with merchandise providers, and systems that helped store managers identify changing buyer behaviours and respond quickly with new pricing and merchandising.
Under Offering there are 3 types, product performance, product system and service.
Product performance is the basic features and functions. The Oxo good grips peeler was not only sharp, but felt great in the hand and looked well. Even though it cost a lot more, it was a smash success, and transformed product design in the entire kitchen gadget category. This an example of consumers buy a product on its performance rather than the price. Product system is structured offering with an array of tailor able, integrated components. Microsoft bundled a variety of productivity enhancement software applications into a single "suite". This product systemisation helped them dominate the software category. Service is assistance provided to prospects and customers. An international flight on any airline will get you to your intended destination. A flight on Singapore Airlines, however, nearly makes you forget your flying at all, with the most attentive, respectful, and pampering pre flight, in flight and post flight services you can imagine.
The last 3 types are channel, brand and customer experience. Channel is conduits through which offerings reach customers. Martha Stewart Living Omnimedia has developed such a deep understanding of its customers that it knows just where to be, stores, magazines, online etc, to drive huge sales volumes from a relatively small set of offerings. Brand is how value is communicated to customers. Virgin has build a strong position in many categories, including air travel, mobile phones and financial services by setting higher expectations for brand attitude and experience than was previously the category norm, and in finding new behaviours to dramatise their youthful and fun loving persona. The last type is customer experience, all aspects of customer interaction with a company and its brands. Harley Davidson has created a worldwide community of millions of bike owners, based more on the experience that bike ownership make possible for them that on the features and functions of their bikes.
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